Smurfit Kappa Group Plc
Smurfit Kappa Group Plc Fundamental Analysis
Smurfit Kappa Group Plc (SK3.IR) shows moderate financial fundamentals with a PE ratio of 14.31, profit margin of 6.82%, and ROE of 14.19%. The company generates $11.1B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 54.4/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze SK3.IR's fundamental strength across five key dimensions:
Efficiency Score
WeakSK3.IR struggles to generate sufficient returns from assets.
Valuation Score
ExcellentSK3.IR trades at attractive valuation levels.
Growth Score
ModerateSK3.IR shows steady but slowing expansion.
Financial Health Score
ExcellentSK3.IR maintains a strong and stable balance sheet.
Profitability Score
WeakSK3.IR struggles to sustain strong margins.
Key Financial Metrics
Is SK3.IR Expensive or Cheap?
P/E Ratio
SK3.IR trades at 14.31 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, SK3.IR's PEG of 0.14 indicates potential undervaluation.
Price to Book
The market values Smurfit Kappa Group Plc at 1.92 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 4.33 times EBITDA. This is generally considered low.
How Well Does SK3.IR Make Money?
Net Profit Margin
For every $100 in sales, Smurfit Kappa Group Plc keeps $6.82 as profit after all expenses.
Operating Margin
Core operations generate 11.35 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $14.19 in profit for every $100 of shareholder equity.
ROA
Smurfit Kappa Group Plc generates $5.92 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Smurfit Kappa Group Plc produces operating cash flow of $1.54B, showing steady but balanced cash generation.
Free Cash Flow
Smurfit Kappa Group Plc produces free cash flow of $665.89M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $2.55 in free cash annually.
FCF Yield
SK3.IR converts 6.08% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
14.31
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.14
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.92
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.99
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.72
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.51
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.14
vs 25 benchmark
ROA
Return on assets percentage
0.06
vs 25 benchmark
ROCE
Return on capital employed
0.13
vs 25 benchmark
How SK3.IR Stacks Against Its Sector Peers
| Metric | SK3.IR Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 14.31 | 23.78 | Better (Cheaper) |
| ROE | 14.19% | 1098.00% | Weak |
| Net Margin | 6.82% | -626.00% (disorted) | Weak |
| Debt/Equity | 0.72 | 0.86 | Neutral |
| Current Ratio | 1.51 | 2.64 | Neutral |
| ROA | 5.92% | -8081.00% (disorted) | Weak |
SK3.IR outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Smurfit Kappa Group Plc's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Cyclical, Growth, Discretionary
EPS CAGR
N/A
Industry Style: Cyclical, Growth, Discretionary
FCF CAGR
N/A
Industry Style: Cyclical, Growth, Discretionary